Jack Henry & Associates Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 5, 2013 at 12:00AM
Other

Jack Henry & Associates (Nasdaq: JKHY) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Jack Henry & Associates beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.

Gross margins grew, operating margins dropped, net margins contracted.

Revenue details
Jack Henry & Associates reported revenue of $278.7 million. The eight analysts polled by S&P Capital IQ expected a top line of $274.5 million on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $255.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.57. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.50 per share. GAAP EPS of $0.47 for Q2 were 6.8% higher than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.9%, 190 basis points better than the prior-year quarter. Operating margin was 21.3%, 250 basis points worse than the prior-year quarter. Net margin was 14.5%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $275.3 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $1.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 244 members out of 249 rating the stock outperform, and five members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Jack Henry & Associates a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack Henry & Associates is hold, with an average price target of $39.86.

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